Not all banks are the same and some offer far higher interest rates, and lower overdraft fees than others, not to mention better customer service.
Better still, the Current Account Switch Service means that your new provider does most of the admin for you.
Here, we reveal the banks offering the biggest incentives to switchers and the pitfalls to look out for.
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We don't recommend switching just because a bank is offering short-term perks – we think you should focus on interest rates, overdraft charges and its Which? customer score.
But if you're already looking to move, it's worth seeing what incentives are on offer:
| Provider | Account name | Switching bonus | Which? Customer Score |
|---|---|---|---|
| First Direct (WRP) | 1st Account | £175 | 82% |
| Santander | Edge Account | £36 | 70% |
Table notes: Data correct as of 16 September 2024. Which? customer score: Our rating for customer satisfaction, based on feedback from real customers. The score is made up of a customer's overall satisfaction with the brand and how likely they are to recommend that brand to a friend. We surveyed 4,550 members of the general public in August 2023. Our full table includes scores and star ratings for all banks, including those chosen to be a Which? Recommended Provider (WRP).
To qualify for the switching bonus you must use the Current Account Switch Service and move across at least two Direct Debits or standing orders. You must also deposit £1,000 into your account, make at least five debit card payments and log on to online banking within 30 days.
The £175 will be credited to your account on the 20th of the month after you meeting the switching criteria.
You're not eligible for this offer if you've previously held any First Direct financial product, or if you opened a HSBC current account on or after 1 January 2018.
To qualify for the cash bonus you do not need to be a new customer or switch bank account.
Instead you need to deposit £500 within the first 30 days of opening the account. Accounts that meet this criteria will be paid £36 within 60 days of opening the account.
Be aware the Edge Account has a £3 monthly fee.
There are plenty of reasons to switch bank accounts, as our video explains:
Most banks have agreed to use the new switching service, which means it should take just seven working days to switch you over from your old account once the new account is opened.
If you want to check which banks and building societies are participating, you can search by name here
on the Current Account Switch Service (CASS) website.
The switching service is largely automated. The step-by-step process below details exactly what happens.
If you don't yet have an account in mind, you can skip to our advice on choosing the best current account below.
When you apply to the new provider, it will undertake its normal account-opening procedures.
Banks and building societies have to comply with strict money-laundering rules, so when you open an account you'll be asked to provide two separate documents for proof of identity and proof of address.
You'll then need to complete a Current Account Switch Agreement form and a Current Account Closure Instruction form, provided by your new bank or building society.
Your new bank or building society will confirm whether it's using the Current Account Switching Service, which is backed by the Current Account Switch Guarantee.
This guarantee means that it will correct any problems with payments as a result of the switching process.
You'll be able to agree a convenient switch date for you with the new bank or building society.
It can't be a Saturday, Sunday or a bank holiday, and must be at least seven working days after your account has been opened.
Once this date has been agreed, your new bank will provide confirmation that the switch has begun and will be completed on the agreed switch date.
You'll continue using your old current account up until the agreed switching date, although don't set up new payments such as direct debits and standing orders during the seven working days leading up to your agreed switch date.
Your new provider will contact you if there any issues during this period.
On the switch date, your new bank or building society will be responsible for moving your incoming and outgoing payments, and transferring any money to your new account, before closing the old account and sending confirmation that the process is complete.
Applying for multiple current accounts can affect your credit rating in the short term – because banks must run credit checks for the overdraft facility – but having one or two credit application searches will have minimal impact.
Ideally, you should spread credit applications out, so if you're applying for a mortgage or car finance it may be best to wait until you've secured this before switching bank accounts.
It can be beneficial to have a longstanding relationship with your bank when you apply for credit but lenders are far more interested in your actual credit history so don't let this put you off switching to a better bank account.
Yes, having an overdraft isn't a barrier to switching but you'll need to pay off any debt with your old bank.
Whether or not the new account provider offers you an overdraft facility and whether or not it matches your current overdraft limit will depend on your circumstances.
If you have a record of managing your overdraft well, most banks will consider taking the existing overdraft on.
If the new provider won't let you move your existing overdraft across, you can still switch but you will need to discuss a way of paying off your overdraft with your old bank.
Some may agree to keep the old account open to help you pay it off gradually but others may insist you clear the debt before you switch.
Yes, you can switch a joint account as long as both parties agree to do so.
You can only switch to another joint account held by the same people though – it's not possible to use the CASS to switch from a joint account to a sole account.
Under the new switching service, it shouldn't matter what working day you choose to make the switch over to the new account.
However, if all your direct debits and standing orders go out around the same time every month, it makes sense to avoid switching on this day to minimise the potential for any problems.
No, if you don't want to close your old account, you can do a partial switch instead.
The main downside is that you aren't covered by the service guarantee, so you aren't automatically refunded for any charges incurred as a result of a direct debit or standing order failing to transfer properly.
It may also take longer than seven days to complete the switch.
And, the best switching incentives are often reserved for customers who use the full switch (CASS).
The Current Account Switch Guarantee outlines how the switching service works and what rights you have if anything goes wrong with the switch.
All providers offering the Current Account Switch Service will abide by these rules:
If you run into any problems during or after the switching process - for example, if your bank fails to comply with the Switch Guarantee – you should complain in the first instance directly to your new bank.
If you're not happy with the answer you get or it doesn't reply to you within eight weeks, you can take your complaint to the Financial Ombudsman Service (FOS) .
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